Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284171 
Year of Publication: 
2023
Series/Report no.: 
Cardiff Economics Working Papers No. E2023/09
Publisher: 
Cardiff University, Cardiff Business School, Cardiff
Abstract: 
This paper explores the economic impacts of the Bank of England's quantitative easing policy, implemented as a response to the global financial crisis. Using an open economy Dynamic Stochastic General Equilibrium (DSGE) model, we demonstrate that monetary policy can remain effective even when nominal interest rates have reached the zero lower bound. We estimate and test the model using the indirect inference method, and our simulations indicate that a nominal GDP targeting rule implemented through money supply could be the most effective monetary policy regime. Additionally, our analysis suggests that a robust, active fiscal policy regime with nominal GDP targeting could significantly enhance economic stabilization efforts.
Subjects: 
Quantitative easing
Financial friction
SOE-DSGE
Indirect inference
Zero bound
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.